Bitcoin hit $11,000 per coin at 1.55 p.m. GMT (8.55 a.m. ET), up over 10% on the day.

Charles Hayter, the CEO of CryptoCompare, called breaching the $10,000 level a "seminal moment" for the cryptocurrency.

He said in an email: "$10k represents the closing of the second cycle in Bitcoin which has drawn the interest of institutional investors who have so far been constrained from trading by their remits. This is starting to change as more sophisticated and regulated instruments are made available. This will lead to Bitcoins third cycle."